Russian economy facing worst slump since 2008

Last Updated: Thu, Sep 19, 2013 11:54 hrs

Russia's economic growth has fallen below the world average for the first time in five years, the country's economic development minister has said.

Among BRICS countries, which includes India, China, and South Africa, the minister said Russia would lag behind its peers.

"This year, for the first time since the global crisis (in 2008) , we have the GDP below the world's average. This is a very serious red signal for us," reported Xinhua citing Ulyukayev telling members of the State Duma, or lower house of the parliament Wednesday.

The economic growth has been falling since the second half of 2012, with the GDP expanding only 1.4 percent in the first half of 2013 over the same period last year, he said.

The minister underlined flat growth in the industrial sector due to weak demand on global markets and recession in Europe, saying that these factors combined have hit export-oriented Russian economy.

Ulyukayev also warned that Russia would hardly catch up with the world's average pace of growth in 2014 too.

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